AUD/USD: Recovery moves capped near 0.7500 after Aussie Retail Sales, PBOC


  • AUD/USD keeps early Asian recovery following the key data/events.
  • Preliminary Aussie Retail Sales for May drops below 0.7% market consensus, PBOC keep benchmark rate unchanged near 3.85%.
  • Market sentiment remains sluggish, US Treasury yields drop to three-month low.
  • Second-tier US data, Fedspeak eyed for fresh impulse.

AUD/USD bulls ignore downbeat Aussie data as attacking the intraday high of 0.7512 amid the early Monday’s trading. In doing so, the Aussie pair keeps the early Asian recovery moves, amid the broad US dollar pullback, while snapping a four-day downtrend with a 0.42% intraday upside.

Australia’s first reading of May’s Retail Sales eased below 0.7% forecast and 1.1% MoM prior to 0.1%, justifying the market fears of the negative economic impact of Victoria’s snap lockdown. Also, on the same line could be the People’s Bank of China’s (PBOC) decision to keep the benchmark interest rate unchanged near 3.85% despite recently suggesting the pause in the further easy monetary policy.

It’s worth noting that the US dollar index (DXY) steps back from the 10-week top amid a downbeat performance of the US Treasury yields, helping the AUD/USD prices to remain firm by the press time. That said, the US 10-year Treasury yields drop to the lowest since early March, down 3.4 basis points (bps) to 1.41%, while tracking the US inflation expectations to the south.

Read: US Treasury yields drop to early 2021 levels during three-day downtrend

Given the US dollar’s consolidation of the recent gains, coupled with downbeat bond yields, equities in Asia-Pacific remain on the back foot with Japan’s Nikkei 225 being the biggest loser, down 3.22% intraday by the time of the press whereas S&P 500 Futures drop 0.30% on a day.

While cheering USD pullback, the AUD/USD pair ignores downbeat market sentiment as well as chatters relating to the Pacific major’s push to the World Trade Organization (WTO) for saving it from China’s tariffs. Also on the same side could be the global fears of the covid’s Delta variant and uncertainty over US President Joe Biden’s infrastructure and spending package.

Having witnessed an initial reaction to the Asian session’s key data/events, AUD/USD traders will keep their eyes on the Fedspeak and Chicago Fed National Activity Index for May, prior 0.24, for fresh impulse. Should the Fed policymakers remain hawkish, the US dollar rebound can’t be ruled out, which in turn will challenge the Aussie pair’s latest recovery moves.

Technical analysis

200-day SMA level near 0.7555-60, followed by the previous support line from December around 0.7580, restricts short-term AUD/USD upside, which in turn keeps the bear directed to August 2020 top near 0.7420-15.

Additional important levels

Overview
Today last price 0.7506
Today Daily Change 29 pips
Today Daily Change % 0.39%
Today daily open 0.7477
 
Trends
Daily SMA20 0.7703
Daily SMA50 0.7732
Daily SMA100 0.7723
Daily SMA200 0.7555
 
Levels
Previous Daily High 0.7562
Previous Daily Low 0.7477
Previous Weekly High 0.7727
Previous Weekly Low 0.7477
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.7509
Daily Fibonacci 61.8% 0.753
Daily Pivot Point S1 0.7449
Daily Pivot Point S2 0.742
Daily Pivot Point S3 0.7364
Daily Pivot Point R1 0.7534
Daily Pivot Point R2 0.759
Daily Pivot Point R3 0.7619

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.

EUR/USD News

GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.

GBP/USD News

XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more

Forex MAJORS

Cryptocurrencies

Signatures